Shares of aviation sector are under selling pressure because of the hike of 8.2 percent in the jet fuel.
The prices of Jet airways and spice jet fell 5 percent Intraday on Monday, 2nd March 2015, the reason behind was the hike in the prices of aviation turbine fuel (ATF).
The rate hike follows seven consecutive monthly cuts since August, ATF price had been cut by Rs.23,648.73 in seven reductions since August 2014. Even after this hike, jet fuel rates are lowest since February 2011. Jet fuel constitutes over 40 percent of an airline’s operating costs and the price increase will raise the financial burden of cash-strapped carriers.